WGX’s share price has underperformed its Western Australian Gold mining peers over the past month. We attribute the share price weakness to concerns over guidance following WGX’s decision to cease production at Paddy’s Flat. We have reassessed our forecasts for the 2HFY24 and beyond for WGX, noting that our FY24 production forecasts remain within the guidance range, while AISC forecasts are ~4% above the top end of the guidance range. We believe concerns over a miss on cost guidance are now more than factored in, and we upgrade our recommendation from HOLD to BUY. Changes to our longer-term production and AISC forecasts, which now incorporate development additional reserves, drives a 6% lift in our price target to A$2.50. We transfer coverage of WGX to Hayden Bairstow.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
